Two-year fixed mortgage rates have gone down by 114 basis points compared to a year ago, the latest mortgage tracker from Rightmove reveals.
The average two-year fix is now 4.93%, down from 6.07% a year ago.
Meanwhile, the average five-year fixed mortgage rate has fallen 95 basis points to 4.58% from 5.53% a year ago.
The average 85% loan-to-value (LTV) five-year fixed mortgage rate is now 4.61%, down from 5.60% a year ago.
The average 60% LTV five-year fixed mortgage rate has fallen from 5.15% a year ago to 3.87% now.
The average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed, 85% LTV mortgage, is now £1,087 per month, down from £1,187 per month a year ago.
Commenting on the latest figures Propertymark NAEA president Toby Leek says: “It has been an extremely challenging few years for people in terms of approaching the housing market.”
“We have witnessed a very unfavourable mix of high inflation and high interest rates, which truly have affected the ability of people to approach the buying and selling process. However, now that the economy is seeing progression and more overall stability, it’s reassuring to see lenders now starting to overhaul their offerings, which will help bring an enhanced confidence and affordability moving forwards.”
